Tenants in Springfield, Missouri, are taking legal action against both former and current property owners of two low-income housing developments, alleging violations of affordable housing obligations and illegal evictions. The lawsuits aim to preserve what remains of affordable housing options in the city and seek justice for residents forced out of their homes. Here’s a breakdown of what’s at stake and who is involved.
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Legal Action Announced
Tenants at former affordable housing complexes in Springfield filed two lawsuits, Cedarwood Terrace and Rosewood Estates. Advocates gathered at the Greene County Courthouse to publicly address the situation. The lawsuits include a class-action suit to preserve affordable housing and a separate suit for allegedly unlawful evictions.
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Properties Once Governed by Affordable Housing Rules
The housing units in question were governed under the Low-Income Housing Tax Credit (LIHTC) program. This federal program gives property owners tax breaks in exchange for maintaining affordable rents for a minimum of 30 years. However, former owners Zimmerman Properties and Wilhoit Properties chose to exit the program after only 20 years.
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Legal Loophole Used to Exit Program
Although exiting the LIHTC program before the 30-year mark is legally possible, it requires specific steps to ensure the housing remains affordable. According to attorney Gina Chiala, Zimmerman and Wilhoit failed to follow those required procedures. Zimmerman and Wilhoit did not inform the tenants about the transition and its implications until after they sold the properties.
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Sale of Property Without Tenant Notification
Zimmerman and Wilhoit officially opted out in 2023 and sold the properties without notifying tenants. Residents say they were unaware of the change in ownership until spring 2024. The new management intended to convert the properties into luxury apartments, leaving existing tenants scrambling to find alternative housing.
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Current Owners Also Facing Legal Scrutiny
The second lawsuit targets GPS Property Management, which is the current owner, and Bryan Properties, which is alleged to be the property manager. Tenants accuse the new owners of unjust eviction practices and failing to provide adequate notice or assistance in relocating. According to Chiala, the change in use from affordable to luxury housing has forced many long-term tenants out.
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Housing Crisis Worsened by Accessibility Issues
Plaintiff Jami Johnson emphasized the scarcity of affordable and accessible housing in Springfield. Johnson, who has lived in the affected community for over 17 years, says the limited supply leaves vulnerable residents with few options. Accessibility needs make relocating even more difficult, turning an already dire housing situation into a personal crisis.
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Community Impact and Emotional Toll
Johnson noted that the housing loss isn’t just financial; it affects established communities and personal relationships built over decades. Despite the upheaval, she says she holds no personal grudge against the property owners but urges them to let tenants stay in their homes and honour the affordability agreements.
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Rents Nearly Triple After Ownership Change
New units under the current ownership reportedly have rental rates near $1,200 per month, a sharp contrast to the roughly $500 monthly payments residents previously paid. The steep increase places a heavy burden on residents who were originally promised affordable housing under a long-term federal program.
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No Response From Property Owners
Attempts to contact Zimmerman Properties, Wilhoit Properties, and GPS Property Management for comment have gone unanswered. Advocates and tenants continue to push for accountability and seek legal remedies to secure housing stability in Springfield’s increasingly unaffordable market.
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